Capital increase is actually to increase the registered capital of the company. For example, the registered capital of a limited liability company is 6,543,800 yuan, and the shareholders' meeting decides to increase the registered capital by 500,000 yuan. After the capital increase, the registered capital is 6,543,800+0.5 million, and the industrial and commercial change registration is handled. This process is capital increase. It should be noted that increasing the registered capital does not mean increasing the paid-in share capital, nor does it mean that the shareholders actually paid the corresponding capital contribution to the company. China's company law allows the registered capital of a company to be subscribed. For example, the registered capital of a limited liability company is 6,543,800+0,000, and the shareholders subscribe for the capital contribution. According to the Articles of Association, the registered capital shall be paid in full 20 years after the establishment of the company. In other words, when the company was established, the shareholders did not pay any registered capital to the company. Five years after the establishment of the company, the shareholders' meeting decided to increase the registered capital of the company by 500,000 yuan. After the capital increase, the registered capital of the company was changed from 6,543,800+500,000 yuan to 6,543,800+500,000 yuan, but it was still agreed to pay the capital contribution 20 years later. The registered capital of the company increased, that is, the company increased its capital, but in fact the company did not receive any funds.
Legal objectivity:
Regulations of the People's Republic of China on the Administration of Company Registration Article 31 Where a company increases its registered capital, it shall apply for registration of change within 30 days from the date when the resolution or decision on change is made. Where a company reduces its registered capital, it shall apply for registration of change after 45 days from the date of announcement, and submit the relevant certificates of the company's announcement of the company's reduction of registered capital in newspapers and the explanation of the company's debt settlement or debt guarantee. Article 27 A company applying for registration of change shall submit the following documents to the company registration authority: (1) An application for registration of change signed by the legal representative of the company; (2) resolutions or decisions on changes made in accordance with the Company Law. (3) Other documents required by the State Administration for Industry and Commerce.